Keywords
formal institutions
institutional environment
neo-institutional theory
competitive strategies of multinational enterprises.
How to Cite
Abstract
Purpose – The goal of this study is to use the institution-based view
as the background for an investigation of how formal institutions
influence the internationalization processes of firms from an emerging
economy.
Design/methodology/approach – Our case study is based on semistructured
interviews with twenty-one representatives of formal
institutions and firms in the Brazilian wine industry.
Findings – It was noted that formal institutions have positive influences
on the internationalization of Brazilian wineries by providing learning,
relationship networks, intelligence about foreign markets, costs
reduction, internationalization of business processes, and by promoting
the home country’s image as a wine producer in foreign markets, and as
a recognized supplier to the domestic market. They also have negative
influences, as excessive bureaucracy, strikes, erection of legal barriers to
trade with other countries, insufficient technical knowledge, high taxes,
and favoritism benefiting the largest wine producers in the industry.
Originality/value – The paper closes with suggestions for future
research on how phenomena such as the relationship strategies
established by the wineries impact upon internationalization and how
decisions of a political nature made by formal institutions influence
the wine industry, providing a new outlook on the internationalization
of these firms.
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